Pepsi 1.5L $1.70, Coca-Cola 1.5L $3.80.
Naturally, brand loyalty doesn't exist and consumers are completely rational.
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Asian people I know always go for the most expensive item, to them, it must seem to be the best. I have seen it happen at retail stores as well. It’s like giving them a boost to their ego. Also like carrying wads of cash.
It makes no sense to me, but it does to them.
I saw this posted on HC which was apparently information written for Chinese investors (https://zhuanlan.zhihu.com/p/337852279) translated into english in the image. I thought points 4, 5, 6 on the advantages side were interesting when many think A2 product is priced higher than competitors.
Attachment 12162
http://nzx-prod-s7fsd7f98s.s3-websit...654/338149.pdf
"...A key feature of a2MC’s proposed investment in MVM is that MVM’s current majority shareholder, China Animal Husbandry Group (CAHG), will retain a 25% interest in MVM alongside a2MC. CAHG is a wholly owned subsidiary of China National Agriculture Development Group Co., Ltd, which is also the parent company of a2MC’s strategic logistics and distribution partner in China, CSFA Holdings Shanghai, Co., Ltd. (China State Farm)...."
"....• partnering with a highly-respected China state owned enterprise in CAHG, to assist in further developing the business, including into China;
• the opportunity to produce additional infant nutrition products for China and other markets; and
the ability to capture manufacturing margin...."
"...Dr.Xue, Chairman of MVM, said, “CAHG welcomes The a2 Milk Company as a strategic partner as both companies share the same vision of creating large scale world-class nutritional manufacturing at MVM. a2MC already works closely with our sister company China State Farm and is well respected in the China market. CAHG would like to thank our local farmers and staff for their continued support and is looking forward to MVM being a significant contributor in the Southland economy...”
And week later, Pepsi $3.00, Cocal-Cola $1.85.
Oldest trick in the book - brand rotation sales in supermarkets.
ETA chips sale one week, Blue Bird chips another.
There is supermarket sale rotation as well - chicken on sale at Oak n Save one week, Countdown the next.
I think the more telling quote in that announcement (for those that take an interest in the relationship with SML anyway):
With the business currently producing a high proportion of commodity milk powder products, our plans for
MVM are to support its transition to being a manufacturer of predominantly consumer packaged
nutritional products for a2MC over the medium term.
It then goes on to talk about having MVM producing significant nutritional volumes by 2025. Isn't that roughly when SML's contract comes up?